Michigan Foreclosure Laws

Although Michigan foreclosure laws permit both in-court (also known as judicial) and out-of-court (also known as non-judicial) foreclosure procedures, judicial foreclosures are not very widely used in the state. Most foreclosures take approximately eight months, but the process can take between three and fourteen months. The redemption period is the main factor affecting how long a Michigan foreclosure will take.

Pre-Foreclosure

Most Michigan mortgages have a sale clause that lets a lender sell a property - without going to court - in the event of a default. If a mortgage does not contain this clause, judicial foreclosure is the only other option.

Some mortgages require a lender inform a debtor of a pending foreclosure sale, but Michigan foreclosure laws do not generally have such a requirements. Mortgage terms will also dictate what rights the debtor has in stopping foreclosure before the foreclosure auction.

Notice of Auction

A Michigan foreclosure usually takes place about sixty days after the lender initiates the foreclosure. Before the property can be sold at a public auction, however, a notice of sale must be published. This notice, also known as a notice of auction, must the published for four weeks (once per week) in a local newspaper. Additionally, the notice must first be published at least 28 days before the auction is to take place. The notice must also be posted on the property itself. To be considered valid, a notice of auction in Michigan must contain the default amount, the names of the debtor and lender, mortgage information, the duration of the redemption period, and a description of the property. If an auction is postponed, a notice of the postponement must be posted at the location of the sale.

In Michigan, foreclosure sales are held between 9:00 am and 4:00pm and usually take place at the county courthouse. A sheriff or trustee will usually oversee the auction. The sale is open to the public and once the winning bidder is established, the sheriff or trustee overseeing the sale gives the winning bidder that transfer ownership of the property and clearly outline the redemption period expiration. Many redemption periods are about six months after the foreclosure sale, but this can vary. The debtor can redeemed the property by paying the amount of the winning bid and related costs during the redemption period.